Detailed Cardano (ADA) Ichimoku Analysis
This analysis will cover the 3-week, 1-week and Daily Ichimoku charts.
Cardano 3-week Ichimoku Chart
Above: Cardano (ADA) 3-week Ichimoku Chart
I’ve drawn two vertical lines on Cardano’s chart (above) to highlight the differences between the respective RSI and CI levels. #1 shows that close of the candlestick is lower than the high of the current candlestick (#2). Now take a look at the RSI and CI levels at #1 when compared to #2 – The RSI and CI levels at #1 are higher than #2. This creates a condition known as hidden bullish divergence. In other words, any pullback that Cardano experiences should be considered a buying opportunity, especially if it pulls back to the Tenkan-Sen and/or Kijun-Sen. One other thing to note is at #3. #3 is the first ever Kumo Twist (Future Senkou Span A crossing above Future Senkou Span B) on Cardano’s 3-week chart.
Key Support Zones: 0.7818 – 0.8167
Cardano Weekly Ichimoku Chart
Above: Cardano (ADA) Weekly Ichimoku Chart
Cardano’s weekly Ichimoku chart has similar bullish conditions as the 3-week chart. Cardano is currently in its third consecutive black/red weekly candlestick. It continues to find support against the Tenkan-Sen and Kijun-Sen. Something that could signal a major expansion phase for Cardano is the behavior of the Tenkan-Sen and Kijun-Sen: they are expanding from one another. In other words, the Kijun-Sen is flat while the Tenkan-Sen is rising. We’ve not seen a clear ‘gap’ between the Tenkan-Sen and Kijun-Sen on Cardano’s weekly chart since August 2020. We can also see the Future Senkou Span A moving higher while the Future Senkou Span B is flat (#1). This would be the first ‘gap’ we’ll see develop between Span A and Span B since Nov-Dec 2020. Now take a look at the two green arrows. The arrow on the price chart is pointing up, indicating higher lows while the arrow pointing down on the CI is showing lower lows. When price shows higher lows and an oscillators shows lower lows, what is that called? Hidden bullish divergence. This means any pullback to the Kijun-Sen or Tenkan-Sen could turn into a buying opportunity. But watch out for where the %B is at when price gets near the Tenkan Sen or Kijun-Sen. If it crosses below the 0.8 and failed to cross back above, we could see a flash crash.
Cardano Daily Ichimoku Chart
Above: Cardano (ADA) Daily Ichimoku Chart
Oh man. Cardano’s daily chart shows an imminent bullish breakout is likely to occur. There are three boxes to check for executing a long on Cardano based on the daily chart.
1.Look at the trendline on the RSI (#1) – when the RSI crosses above this trendline, one of three conditions have been met to buy.
2.This triangle on the CI (#2) – when the CI (red average) crosses above the triangle, one of three conditions have been met to buy.
a.Side note – there is regular bullish divergence between the RSI and CI.
3.When the %B (#3) crosses above 0.2, one of three conditions have been met to buy.